Lender · IL FL, WI · Member since 2021 · 2 posts · 1 vote
Effectively immediately you should see a significant improvement in mortgage rates on Investment Properties and Second Homes
FHFA announces they are suspending certain provisions from the preferred stock purchase agreement, which caused big hits to the pricing adjustment on Investment properties and Second homes, among many other affects a.k.a higher interest rates.
combined with the removal of the adverse market fee earlier this summer there is a real opportunity to refinance any investment property or second home purchased/refinanced since the summer of 2020
Lender · IL FL, WI · Member since 2021 · 2 posts · 1 vote
5y
Jessica,
Part of the preferred stock purchase agreement put a 7% cap on delivery of investment properties and second homes to Fannie and Freddie. Because of this, lenders had to add huge adjustments to their pricing when they were at or near 7% delivery threshold.
The announcement last night is suspending that cap or essentially undoing it allowing lenders to originate and deliver these loans without the fear of being punished or exceeding their allotment.